Equipment Loans for Small Businesses
Equipment financing is a type of small business loan that allows businesses to borrow money for equipment while using the equipment itself as collateral to secure the loan. It’s similar to how a car buyer can use the vehicle’s title as a guarantee that a car loan will be paid. The amount and terms of such an equipment loan depend largely on the value of the purchase and its expected lifespan. Payments are usually made monthly and a down payment is required, with 20 percent being a standard amount.
Leasing Equipment vs. Buying Equipment
While equipment financing has its advantages, an alternative to this is leasing the equipment. See how they compare.
Down PaymentIf there is any, it will be for a smaller amount than a commercial loan
Down PaymentRequires a down payment of typically 20%
Equipment OwnershipMany leasing opportunities allow the option to return the equipment or purchase it after the end of the lease
Equipment OwnershipYou own the equipment, therefore you can sell or keep it as needed
Purchase Equipment With a Line of Credit
Headway Capital offers a flexible business lines of credit for any legitimate business needs — including buying equipment. Once approved, you can borrow as much as you need (up to your credit limit), as many times as you need to, without having to reapply. The repayment schedule is set by you when you draw on these funds, and you’ll only pay interest on what you borrow each time.
Business line of credit
12, 18 or 24 months
No Hidden Fees
See our Rates & Terms for details
Weekly or monthly
Clear payment terms, interest does not compound, no penalty for early payoff
Apply in minutes to see if you qualify, and put our funding to use on the equipment you need!Apply Now
1We always do a soft inquiry unless your credit file is restricted, in which case we would ask you to contact the credit bureau to lift the restriction. Doing so may result in a hard pull.